Meos Report Q1 2012 Final

Manpower Employment Outlook SurveyUnited States

A Manpower Research Report

Q1 2012

Contents

United States Employment Outlook 1 Regional Comparisons

Global Employment Outlook 7

About the Survey 8Q

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Manpower Employment Outlook Survey United States

Please note that throughout this report, the figure used in all graphs is the “Net Employment Outlook.” This figure is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers that expect to see a decrease in employment at their location in the next quarter. In addition, percentage totals may not equal 100% due to rounding.

’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12Net Employment OutlookSeasonally Adjusted Outlook

No bar indicates Net Employment Outlook of zero. Revised methodology effective Quarter 1 2009.

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More than 18,000 interviews have been conducted with employers within the United States, including all 50 states, the top 100 Metropolitan Statistical Areas (MSAs), the District of Columbia and Puerto Rico, to measure hiring intentions between January and March 2012. The mix of industries within the survey follows the North American Industry Classification System (NAICS) Supersectors and is structured to be representative of the U.S. economy. All participants were asked, “How do you anticipate total employment at your location to change in the three months to the end of March 2012 as compared to the current quarter?”

Among U.S. employers surveyed, 14 percent expect to add to their workforces, and 9 percent expect a decline in their payrolls during Quarter 1 2012. Seventy percent of employers anticipate making no change to staff levels, and the remaining seven percent of employers are undecided about their Quarter 1 2012 hiring plans.

When seasonal variations are removed from the data, the Net Employment Outlook is +9%. Survey results suggest that employers expect a slight increase in hiring during Quarter 1 2012 compared to Quarter 4 2011 and a relatively stable hiring pace compared to one year ago at this time. U.S. employers have now conveyed a positive Outlook for nine straight quarters and are anticipating the first increase in their hiring pace since Quarter 1 2011.

All four U.S. regions surveyed report a positive Net Employment Outlook. When seasonal variations are removed from the data, employers in the Midwest region report the strongest Outlook at +10%. Quarter-over-quarter, plans to add workers are slightly improved among employers in the Northeast and remain consistent among employers in the Midwest, South and West. Compared to one year ago at this time, employers in all regions project a relatively stable hiring environment for Quarter 1 2012.

United States Employment Outlook

The results of the Manpower Employment Outlook Survey in the United States include Puerto Rico. 1

Increase Decrease No Change Don’t Know Net EmploymentOutlook

SeasonallyAdjusted

% % % % % %

Quarter 4 2011 16 11 70 3 5 7Quarter 1 2012 14 9 70 7 5 9

Quarter 3 2011 20 8 69 3 12 8

14 10 73 3 4 8Quarter 1 2011

16 6 74 4 10 8Quarter 2 2011

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Industry Sector ComparisonsFor Quarter 1 2012, employers have a positive Outlook in 12 of the 13 industry sectors included in the survey: Mining (+16%), Leisure & Hospitality (+14%), Wholesale & Retail Trade (+9%), Professional & Business Services (+9%), Durable Goods Manufacturing (+8%), Information (+8%), Financial Activities (+8%), Nondurable Goods Manufacturing (+4%), Other Services (+4%), Education & Health Services (+3%), Transportation & Utilities (+2%) and Government (+1%). Employers in one industry sector have a negative Outlook: Construction (-7%).

When the industry sector data is compared quarter-over-quarter, employers in the Leisure & Hospitality sector anticipate a moderate hiring increase, while

employers in the Government sector anticipate a slight hiring increase. The hiring pace is expected to remain relatively stable among employers in eight industry sectors: Mining, Durable Goods Manufacturing, Transportation & Utilities, Information, Financial Activities, Professional & Business Services, Education & Health Services and Other Services. The Construction and Nondurable Goods Manufacturing sectors anticipate a slight decrease in the hiring pace, while Wholesale & Retail Trade employers intend to moderately decrease hiring.

Results for the Mining sector are reported only in the national survey data to ensure statistical accuracy.

Increase Decrease No Change Don’t Know

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Construction 10 17 66 7Education & Health Services 69 78 7Financial Activities 13 5 76 6Government 9 8 76 7Information 15 7 71 7Leisure & Hospitality 23 9 62 6Manufacturing – Durable Goods 16 8 70 6Manufacturing – Nondurable Goods 13 9 71 7Mining 26 6210 2Other Services 10 6 79 5Professional & Business Services 18 9 67 6Transportation & Utilities 14 12 68 6Wholesale & Retail Trade 18 9 67 6

Net EmploymentOutlook Q1 2012

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Net EmploymentOutlook Q4 2011

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Net EmploymentOutlook

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%%%%% %All Industries – Midwest 15 9 71 5 6 10Construction 11 19 61 9 -8 –Education & Health Services 79 79 5 2 –Financial Activities 15 4 74 7 11 –Government 7 10 77 6 -3 –Information 16 5 76 3 11 –Leisure & Hospitality 21 9 65 5 –12Manufacturing – Durable Goods 23 6 65 6 17 –Manufacturing – Nondurable Goods 20 7 66 7 13 –

Other Services 9 5 81 5 4 –Professional & Business Services 19 10 68 3 9 –Transportation & Utilities 16 12 68 4 4 –Wholesale & Retail Trade 18 7 68 7 11 –



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Regional Comparisons

In the Midwest, 15 percent of employers surveyed expect to increase staff levels for Quarter 1 2012 and 9 percent anticipate reduced headcounts, leading to a Net Employment Outlook of +6%. When seasonal variations are removed from the data, the Outlook for Quarter 1 2012 is similar to Quarter 4 2011 and one year ago at this time.

In the Midwest, hiring plans are slightly stronger for Quarter 1 2012 compared to Quarter 4 2011 across four industry sectors. A moderate increase is anticipated among employers in the Government sector. Employers in the Nondurable Goods Manufacturing, Information and

Leisure & Hospitality sectors look for the hiring pace to slightly increase. Employers in five sectors expect relatively stable hiring: Construction, Durable Goods Manufacturing, Financial Activities, Professional & Business Services and Education & Health Services. Other Services employers project a slight decrease in hiring, and employers in two industry sectors expect the hiring pace to moderately decline quarter-over-quarter: Transportation & Utilities and Wholesale & Retail Trade.

The Midwest Region comprises the following states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin. Because the industry sector reporting method has been changed effective Quarter 1 2009, seasonally adjusted data for individual industries is not currently available.

Midwest Seasonally Adjusted Net Employment Outlook: +10%

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In the Northeast, 13 percent of employers indicate plans to increase staff levels, while 10 percent expect to decrease payrolls, resulting in a Net Employment Outlook of +3% for Quarter 1 2012. The seasonally adjusted survey data reflects a slightly stronger Outlook compared to three months ago, while remaining stable compared to one year ago at this time.

Compared to Quarter 4 2011 survey results for the Northeast, employers in Leisure & Hospitality expect the hiring pace to considerably increase in Quarter 1 2012, while employers in Transportation & Utilities project a moderate increase in hiring. Employers in two industry sectors report a slight increase in hiring intentions for

January – March 2012 compared to October – December 2011: Education & Health Services and Government. Durable Goods Manufacturing and Financial Activities industry sector employers expect hiring to remain stable in Quarter 1 2012. A slight decrease is expected by Nondurable Goods Manufacturing and Information employers, a moderate decrease is expected by Wholesale & Retail Trade, Professional & Business Services and Other Services employers, and a considerable decrease is anticipated by Construction employers.


SeasonallyAdjusted


%%%%% %All Industries – Northeast 13 10 70 7 3 8Construction 8 19 64 9 -11 –Education & Health Services 58 80 7 3 –Financial Activities 13 6 74 7 7 –Government 8 9 78 5 -1 –Information 11 8 72 9 3 –Leisure & Hospitality 21 11 62 6 –10Manufacturing – Durable Goods 17 7 69 7 10 –

Manufacturing – Nondurable Goods 11 12 68 9 -1 –

Other Services 7 8 80 5 -1 –

Professional & Business Services 14 10 67 9 4 –

Transportation & Utilities 14 13 66 7 1 –Wholesale & Retail Trade 19 10 66 5 9 –

Net Employment OutlookSeasonally Adjusted Outlook

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Revised methodology effective Quarter 1 2009.

The Northeast Region comprises the following states: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont. Because the industry sector reporting method has been changed effective Quarter 1 2009, seasonally adjusted data for individual industries is not currently available.

Northeast Seasonally Adjusted Net Employment Outlook: +8%


SeasonallyAdjusted


%%%%% %All Industries – South 15 8 71 6 7 9Construction 9 16 69 6 -7 –Education & Health Services 511 75 9 6 –Financial Activities 12 5 78 5 7 –Government 10 6 76 8 4 –Information 18 5 69 8 13 –Leisure & Hospitality 27 8 60 5 –19Manufacturing – Durable Goods 14 7 73 6 7 –Manufacturing – Nondurable Goods 10 7 76 7 3 –




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In the South, 15 percent of employers surveyed expect to increase staff levels, and 8 percent plan to decrease their employee headcounts, resulting in a Net Employment Outlook of +7%. When seasonal variations are removed from the data, the expected Quarter 1 2012 hiring pace is relatively unchanged from Quarter 4 2011 and Quarter 1 2011.

Quarter-over-quarter, Leisure & Hospitality employers are the only sector in the South to report a considerable increase in hiring expectations. Employers in four industry sectors anticipate hiring to slightly increase quarter-over-quarter in Quarter 1 2012, whereas employers in three industry sectors surveyed expect

hiring to remain relatively stable heading into Quarter 1 2012. Employers expect a slightly increased hiring pace in the Durable Goods Manufacturing, Information, Professional & Business Services and Government industries. Financial Activities, Education & Health Services and Other Services employers anticipate a relatively stable hiring pace, while Nondurable Goods Manufacturers and Transportation & Utilities employers expect a slight decrease in their hiring. Construction and Wholesale & Retail Trade employers look to moderately decrease hiring this quarter compared to Quarter 4 2011.

The South Region comprises Puerto Rico and the following states: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia. Because the industry sector reporting method has been changed effective Quarter 1 2009, seasonally adjusted data for individual industries is not currently available.

South Seasonally Adjusted Net Employment Outlook: +9%


Net Employment OutlookSeasonally Adjusted Outlook

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Among employers surveyed in the West, 13 percent plan to add staff, while 10 percent anticipate a decline in payrolls, resulting in a Net Employment Outlook of +3% for Quarter 1 2012. According to seasonally adjusted survey results, employers in the West anticipate a relatively stable hiring Outlook compared to Quarter 4 2011 and one year ago at this time.

In the West, five industry sectors have an improving Net Employment Outlook, one is relatively stable, and the remaining six are declining. Compared to one quarter ago, Construction and Professional & Business Services

employers anticipate a moderate increase in hiring, while Financial Activities, Other Services and Government employers expect slight improvement. Transportation & Utilities employers foresee relatively stable hiring levels. Durable Goods Manufacturing, Education & Health Services and Leisure & Hospitality employers plan to slightly decrease staff levels. Employers in the Information industry sector plan to hire at a moderately slower pace in the first quarter. Nondurable Goods Manufacturing and Wholesale & Retail Trade employers anticipate a considerable decrease in job prospects.


SeasonallyAdjusted


%%%%% %All Industries – West 13 10 71 6 3 6Construction 11 14 69 6 -3 –Education & Health Services 59 78 8 4 –Financial Activities 13 5 77 5 8 –Government 10 11 74 5 -1 –Information 14 12 65 9 2 –Leisure & Hospitality 20 10 64 6 –10Manufacturing – Durable Goods 12 10 71 7 2 –Manufacturing – Nondurable Goods 12 13 70 5 -1 –


The West Region comprises the following states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming. Because the industry sector reporting method has been changed effective Quarter 1 2009, seasonally adjusted data for individual industries is not currently available.

West Seasonally Adjusted Net Employment Outlook: +6%

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Each quarter ManpowerGroup conducts research to measure employment trends* in 41 of the world’s largest labor markets. Nearly 65,000 employers have been interviewed across 41 countries and territories to measure employer hiring expectations between January and March 2012. Despite continuing economic challenges and widespread uncertainty in the global labor market, employers in 31 of the 41 countries and territories ManpowerGroup surveys expect to add to their workforces in varying degrees during the first three months of the year.

Employers in India, Brazil, Taiwan and Panama report the strongest first-quarter hiring plans globally. Meanwhile, those in Greece, Hungary and Italy report the weakest Net Employment Outlooks. Hiring optimism weakens from three months ago in 30 countries and territories and softens in 23 countries and territories compared to this time last year. Debt issues in Europe continue to impact employer hiring plans around the globe, including those in China—where Europe represents their largest export market. China’s considerable year-over-year decline in employer confidence is also attributable to deliberate efforts by the Chinese government to cool down the economy. Meanwhile, in the U.S., forecasts improve or remain stable in nine of 13 sectors from both three months ago and last year. And in Japan, employers report the country’s strongest hiring plans since the third quarter of 2008.

Regionally, employers throughout Asia Pacific continue to report positive Net Employment Outlooks. Job

seekers in India are likely to benefit from the most vigorous hiring pace reported among the eight countries and territories in the region, with aggressive recruitment of IT talent expected to heat up competition for talent in an already booming labor market. However, compared to last year at this time, hiring plans soften in six countries and territories, including China’s notable drop in employer confidence. Hiring intentions among Japanese employers are the least robust in the region, despite slight improvements in the Net Employment Outlook from the previous quarter and 12 months ago.

Hiring plans remain positive in all 10 countries ManpowerGroup surveys in the Americas. Labor markets are expected to improve or remain relatively stable in six of 10 countries in a quarter-over-quarter comparison. The year-over-year comparison is split, with Net Employment Outlooks strengthening in five countries and weakening in five. Regional hiring expectations are strongest in Brazil and weakest in the U.S. where employers, nonetheless, expect hiring activity to slightly improve in the next three months.

In the EMEA region, hiring trends remain mixed with employers reporting positive hiring intentions in 13 of the 23 countries surveyed. Individual Outlooks decline in 18 of 23 countries from three months ago and weaken in 12 where year-over-year comparisons are possible. Regional hiring plans are strongest in Turkey, Israel, Germany, Norway and Sweden, and weakest in Greece as well as Hungary, where employers expect to put the brakes on hiring in the next three months.

* Commentary is based on seasonally adjusted data where available.

Survey Respondents by Region

Americas46%

EMEA30%

Asia Pacific24%

Global Employment Outlook

Research for the Quarter 1 2012 Manpower Employment Outlook Survey involved surveying nearly 65,000 human resources directors and senior hiring managers from public and private organizations worldwide. 46% of respondents come from 10 countries in the Americas; 24% from eight countries and territories across Asia Pacific; and 30% from 23 countries in EMEA.

Full survey results for each of the 41 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found at the Manpower Press Room at press.manpower.com. In addition, all tables and graphs from the full report are available for download from the ManpowerGroup website at www.manpowergroup/research.

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The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforces during the next quarter. The survey has been running for 50 years and is one of the most trusted surveys of employment activity in the world. Various factors underpin the success of the Manpower Employment Outlook Survey:

Unique: It is unparalleled in its size, scope, longevity and area of focus.

Projective: The Manpower Employment Outlook Survey is the most extensive, forward-looking employment survey in the world, asking employers to forecast employment over the next quarter. In contrast, other surveys and studies focus on retrospective data to report on what occurred in the past.

Independent: The survey is conducted with a representative sample of employers from throughout the countries in which it is conducted. The survey participants are not derived from Manpower’s client base.

Robust: The survey is based on interviews with nearly 65,000 public and private employers across 41 countries and territories to measure anticipated employment trends each quarter. This sample allows for analysis to be performed across specific sectors and regions to provide more detailed information.

Focused: For nearly five decades, the survey has derived all of its information from a single question.

Survey QuestionAll employers participating in the survey worldwide are asked the same question, “How do you anticipate total employment at your location to change in the three months to the end of March 2012 as compared to the current quarter?”

MethodologyThe Manpower Employment Outlook Survey is conducted using a validated methodology, in accordance with the highest standards in market research. The research team for the 41 countries and territories where the survey is currently conducted includes Manpower’s internal research team and Infocorp Ltd. The survey has been structured to be representative of each national economy. The margin of error for all national, regional and global data is not greater than +/- 3.9%.

Regions: The survey reports results by the four regions within the U.S. as determined by the U.S. Census Bureau. Each region is represented with a minimum error factor of +/- 1.4% based on a 90% confidence level.

Industries: The survey reports national results by the NAICS Supersectors. Error factors not to exceed +/- 5% for Mining and +/- 3% for the remaining Supersectors based on a 90% confidence level.

Net Employment OutlookThroughout this report, we use the term “Net Employment Outlook.” This figure is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting to see a decrease in employment at their location in the next quarter. The result of this calculation is the Net Employment Outlook.

Seasonal AdjustmentSeasonal adjustments have been applied to the data for Argentina, Australia, Austria, Belgium, Canada, Costa Rica, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Peru, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, the United Kingdom and the United States to provide additional insight into the survey data. These adjustments make it possible to review the data without the employment fluctuations that normally occur at the same time each year, thus providing a clearer picture of the data over time. Manpower intends to add seasonal adjustments to the data for other countries in the future, as more historical data is compiled. Note that in Quarter 2 2008, Manpower adopted the TRAMO-SEATS method of seasonal adjustment for data.

Additional Information AvailableFind complete survey results, including reports for the top 100 Metropolitan Statistical Areas, 50 states, District of Columbia and Puerto Rico on our website at press.manpower.com.

History of the Survey1962 First generation of the Manpower Employment Outlook

Survey launched in the United States and Canada.

1966 Manpower’s United Kingdom operation launches the equivalent of the United States survey, naming the report the Quarterly Survey of Employment Prospects. The survey adopts the same forward looking research format as the United States survey and is the first of its kind in Europe.

1976 Second generation of the Manpower Employment Outlook Survey launched in the United States and Canada. Research methodology is updated to evolve with advancements in the field of market research.

About the Survey

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2002 Manpower United Kingdom's Quarterly Survey of Employment Prospects is updated to adopt an enhanced research methodology. Manpower's operations in Mexico and Ireland launch the survey in their respective countries.

2003 Third generation of the Manpower Employment Outlook Survey is launched, expanding the program to a total of 18 countries worldwide: Australia, Austria, Belgium, Canada, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, Norway, Singapore, Spain, Sweden, the United Kingdom and the

United States.2004 Manpower operations in New Zealand launch the

Manpower Employment Outlook Survey.

2005 Manpower operations in China, India, Switzerland,

and Taiwan launch the Manpower Employment

Outlook Survey.2006 Manpower operations in Costa Rica and Peru join the

survey program. Surveys in Australia, Austria, Belgium, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, Norway, Singapore, Spain and Sweden add seasonally adjusted data in the third quarter. Manpower operations in South Africa launch the Manpower Employment Outlook Survey.

2007 Manpower operations in Argentina join the Manpower

Employment Outlook Survey. The survey in New

Zealand adds seasonally adjusted data in the

first quarter.2008 Manpower operations in Colombia, the Czech

Republic, Greece, Guatemala, Poland and Romania join the survey program. China and Taiwan add seasonally adjusted data in the second quarter. India and Switzerland add seasonally adjusted data in the third quarter.

2009 Manpower operations in Hungary and Brazil launch the

Manpower Employment Outlook Survey. 2010 Manpower’s Panama operation launches the

Manpower Employment Outlook Survey, expanding the program total to 36 countries and territories worldwide. Peru adds seasonally adjusted data in the second quarter. Costa Rica adds seasonally adjusted data in the fourth quarter.

2011 Beginning in the first quarter, operations in Bulgaria,

Slovenia and Turkey join the Manpower Employment

Outlook Survey. Additionally, seasonally adjusted data is

added in the first quarter for Argentina and South

Africa. Israel and Slovakia launch the Manpower

Employment Outlook Survey in the fourth quarter.

About ManpowerGroup™ ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world's largest and industry-leading network of nearly 3,900 offices in over 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps the organizations and individuals we serve achieve more than they imagined — because their success leads to our success. And by creating these powerful connections, we create power that drives organizations forward, accelerates personal success and builds more sustainable communities. We help power the world of work. The ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. Learn more about how ManpowerGroup can help you win in the Human Age at www.manpowergroup.com.

Meos Report Q1 2012 Final

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